Showing posts with label Saudi Arabia. Show all posts
Showing posts with label Saudi Arabia. Show all posts

Wednesday, November 27, 2019

Yemen's Roadmap To Peace

I know very little about Yemen. I have read very little. But the crisis there must be big enough that I have skimmed a ton of headlines while just going out and about. I am a news junkie. I skim news daily, almost.

This is what I do know. Yemen is not oil-rich. Sand and oil are two different things. It might surprise a lot of people but just because you have sand does not seem to mean you also have oil. Yemen is a poor Arab country. In that Yemen allows for time travel. The oil-rich countries all used to be poor like Yemen. That was only a few decades ago.

Yemen had a president who had been president for a long time, something like 30 years. He was toppled by a group of rebels inspired by the Arab Spring. He was gone and that created a vacuum, quickly filled by the two poles of the regional cold war, Iran and Saudi Arabia. And since there has been a civil war, lurching this way and that. There is widespread misery and mayhem. Fighters are not even 0.1% of the population. But the suffering is across the board.

Iran and Saudi Arabia can't go to war with each other, and they know it. The global economy would have a heart attack if they do. But Yemen is a poor, inconsequential country. War in Yemen does not rattle anyone except the poor, non-fighting Yemenis. This is a sad situation.

And, of course, the military-industrial complex in the United States fishes in every muddied pond. Yemen has been the reason that complex has sold over a hundred billion dollars worth of military hardware. 100 billion dollars is a lot of money.

The sad part is the civil war in Yemen might not see a quick resolution. But it is also true that if it goes for long enough, there are going to be implications beyond Yemen's borders. So it makes sense to proactively put out the civil war fire.

The best way would be for Iran and Saudi Arabia to wind down their Cold War. But that can feel too ambitious for the short term. It is possible to eke out peace inside Yemen even if Iran and Saudi Arabia do not normalize their relations. But it is hard.

There has to be a mediator for the peace talks. I think Imran Khan of Pakistan might be the only available neutral party who has some gravitas. Yemen could be the dress rehearsal for the eventual peace between Iran and Saudi Arabia.

Get the warring factions to meet and talk. Unite their fighters into one unified army for Yemen. Form an interim government. Hold elections to a constituent assembly. Something along those lines.




Yemen crisis: Why is there a war? Yemen, one of the Arab world's poorest countries, has been devastated by a civil war. ......... The conflict has its roots in the failure of a political transition supposed to bring stability to Yemen following an Arab Spring uprising that forced its longtime authoritarian president, Ali Abdullah Saleh, to hand over power to his deputy, Abdrabbuh Mansour Hadi, in 2011.......... Alarmed by the rise of a group they believed to be backed militarily by regional Shia power Iran, Saudi Arabia and eight other mostly Sunni Arab states began an air campaign aimed at restoring Mr Hadi's government........The coalition received logistical and intelligence support from the US, UK and France........... At the start of the war Saudi officials forecast that the war would last only a few weeks. But four years of military stalemate have followed.........

Yemen is experiencing the world's worst man-made humanitarian disaster....... The UN says Yemen is on the brink of the world's worst famine in 100 years if the war continues...... About 80% of the population - 24 million people - need humanitarian assistance and protection.

............ About 20 million need help securing food, including almost 10 million who the UN says are just a step away from famine. Almost 240,000 of those people are facing "catastrophic levels of hunger"........ More than 3 million people - including 2 million children - are acutely malnourished, which makes them more vulnerable to disease........ With only half of the country's 3,500 medical facilities fully functioning, almost 20 million people lack access to adequate healthcare. And almost 18 million do not have enough clean water or access to adequate sanitation..... Consequently,

medics have struggled to deal with the largest cholera outbreak ever recorded

, which has resulted in more than 1.49 million suspected cases and 2,960 related deaths since April 2017......... The war has also displaced more than 3.3 million from their homes, including 685,000 who have fled fighting along the west coast since June 2018....... Separatists seeking independence for south Yemen, which was a separate country before unification with the north in 1990, formed an uneasy alliance with troops loyal to Mr Hadi in 2015 to stop the Houthis capturing Aden......... The situation was made more complex by divisions within the Saudi-led coalition. Saudi Arabia reportedly backs Mr Hadi, who is based in Riyadh, while the United Arab Emirates is closely aligned with the separatists. ....... Gulf Arab states - backers of President Hadi - have accused Iran of bolstering the Houthis financially and militarily, though Iran has denied this........ Yemen is also strategically important because it sits on a strait linking the Red Sea with the Gulf of Aden, through which much of the world's oil shipments pass.



Why Saudi Arabia and Iran are bitter rivals Historically Saudi Arabia, a monarchy and home to the birthplace of Islam, saw itself as the leader of the Muslim world. However this was challenged in 1979 by the Islamic revolution in Iran which created a new type of state in the region - a kind of revolutionary theocracy - that had an explicit goal of exporting this model beyond its own borders. ....... Fast-forward to 2011 and uprisings across the Arab world caused political instability throughout the region. Iran and Saudi Arabia exploited these upheavals to expand their influence, notably in Syria, Bahrain and Yemen, further heightening mutual suspicions........ Iran's critics say it is intent on establishing itself or its proxies across the region, and achieving control of a land corridor stretching from Iran to the Mediterranean....... The strategic rivalry is heating up because Iran is in many ways winning the regional struggle....... In Syria, Iranian (and Russian) support for President Bashar al-Assad has enabled his forces to largely rout rebel group groups backed by Saudi Arabia...........Saudi Arabia is trying desperately to contain rising Iranian influence while the militaristic adventurism of the kingdom's young and impulsive Crown Prince Mohammed bin Salman - the country's de facto ruler - is exacerbating regional tensions........ In the pro-Saudi camp are the other major Sunni actors in the Gulf - the UAE and Bahrain - as well as Egypt and Jordan. ....... In the Iranian camp is Syria's President Bashar al-Assad, a member of a heterodox Shia sect, who has relied on pro-Iranian Shia militia groups, including the Lebanon-based Hezbollah, to fight predominantly Sunni rebel groups..... Iraq's Shia-dominated government is also a close ally of Iran....... This is in many ways a regional equivalent of the Cold War, which pitted the US against the Soviet Union in a tense military standoff for many years.....Iran and Saudi Arabia are not directly fighting but they are engaged in a variety of proxy wars (conflicts where they support rival sides and militias) around the region........ For a long time the US and its allies have seen Iran as a destabilising force in the Middle East. The Saudi leadership increasingly sees Iran as an existential threat and the crown prince seems willing to take whatever action he sees necessary, wherever he deems it necessary, to confront Tehran's rising influence...... Saudi Arabia's vulnerability has been demonstrated by these latest attacks on its oil installations. If a war breaks out, it will be more perhaps by accident rather than design.


....

Saudi purge demonstrates ruthlessness of crown prince Big things are happening in Saudi Arabia. Princes, ministers and top businessmen are being arrested, detained in a luxury hotel, accused of corruption, their planes grounded and their assets seized........ Corruption is rampant in Saudi Arabia. Bribes, sweeteners and lavish kickbacks have long been an integral part of doing business in the world's richest oil-producing nation........ Many of those appointed to key positions amassed astronomical wealth - in some cases running into billions of dollars - far beyond their government salaries, much of it stashed away in offshore accounts.......... The government he leads would love to get its hands on some of these offshore private assets, estimated by some to total as much as $800bn (£610bn)....... The ruling Al Saud family has never revealed how much of the nation's oil wealth goes to which princes and their families, and there are thousands of them. .......... many ordinary Saudis are welcoming this purge of the rich and famous, in the hopes that some of their wealth will be redistributed to the general population...... At 32 years old, Prince Mohammed bin Salman - or MBS, as he is known - has already amassed extraordinary control over the key levers in the country.........He is the youngest defence minister of any major country, and is also driving an economic development programme, declaring his intention to wean Saudi Arabia off its dependence on oil revenues......... He is largely popular with the young, despite dragging the country into a seemingly unwinnable war in Yemen and executing a damaging boycott against neighbouring Qatar. .......

The old guard in Saudi Arabia are rattled.

....... The crown prince knows that to drive through his modernising reform programme he may meet resistance, but he is now demonstrating a steely ruthlessness in removing anyone or anything that could get in his way. ........ There is no-one left in Saudi Arabia with any obvious powerbase to challenge the rise to power of the crown prince and he could well become king and rule for the next half-century........ Some among the royal family are grumbling that he is taking on too much too quickly, but perhaps

more worrying is how the religious conservatives will react in the long-term

.......... The Al Saud depend on these clerics for their legitimacy to rule the home of the two holiest places in Islam, Mecca and Medina (the king carries the title "Custodian of the Two Holy Mosques")........ So far, the clerics have accepted the curbs on their power and in September acceded to the lifting of the ban on women driving, which they always resisted....... In time, history will decide whether the purge begun on Saturday night has set the course for a better, cleaner Saudi Arabia, or whether it has started to melt the glue that holds this complex country together. 

Crown prince says Saudis want return to moderate Islam Saudi Arabia's Crown Prince Mohammed bin Salman has said the return of "moderate Islam" is key to his plans to modernise the Gulf kingdom........ He told reporters that 70% of the Saudi population was under 30 and that they wanted a "life in which our religion translates to tolerance"......... He made the comments after announcing the investment of $500bn (£381bn) in a new city and business zone.......... Dubbed NEOM, it will be situated on 26,500 sq km (10,230 sq miles) of Saudi Arabia's north-western Red Sea coast, near Egypt and Jordan......... Last year, Prince Mohammed unveiled a wide-ranging plan to bring social and economic change to the oil-dependent kingdom known as Vision 2030......... As part of those reforms, the 32-year-old has proposed the partial privatisation of the state oil company, Saudi Aramco, and the creation of the world's largest sovereign wealth fund....... The government also wants to invest in the entertainment sector. Concerts are once again being held and cinemas are expected to return soon................

"We are returning to what we were before - a country of moderate Islam that is open to all religions, traditions and people around the globe," he said.

....... "We want to live a normal life. A life in which our religion translates to tolerance, to our traditions of kindness," he added....... The prince stressed that Saudi Arabia "was not like this before 1979", when there was an Islamic revolution in Iran and militants occupied Mecca's Grand Mosque....... Afterwards, public entertainment in Saudi Arabia was banned and clerics were given more control over public life.



Kashmir Deserves Normalcy
"UAE Against All Violence And Terrorism"
The Hong Kong "Contagion:" Iran, Iraq, Lebanon, Chile And Counting
Thoughts On The Middle East
Formula For Peace Between Israel And Palestine
The Stupidity Of The Ayodhya Dispute
Saudi-Iran: Imran Is The Only One Who Can
New Capitalism Is Techno Capitalism, Hello Marc
The Nation State In Peril
Dubai, Pakistan, Peace, Prosperity
The Dubai Sheikh Is A Business School Case Study
South Asians Working In The Gulf
Masa, MBS, And The Broader Investment Climate

Thursday, October 17, 2019

Saudi-Iran: Imran Is The Only One Who Can

I am a fan of Imran Khan. Imran, for decades, has been the most loved Pakistani inside India. He is like Amitabh Bachchan. Amitabh has been the most loved Indian inside Pakistan for decades. Both have seen tremendous fame. More important, both have exhibited tremendous humility in the face of that tremendous fame.

I grew up in a Nepal that knew soccer, but no cricket. So when I say I am a fan of Imran Khan, I mean Imran Khan the politician. I am a very political person. I was Barack Obama's first full-time volunteer in all of New York City. How do I know? I went to the very first meeting, and I was the only full-timer. I got to know the top 30 Obama volunteers in NYC that election cycle. A few years before that I was the only Nepali in all of America to do full-time work for the Nepal democracy movement that saw spectacular success during 19 days of April in 2006.

Imran Khan was at Columbia University in New York, I believe sometime around 2009 or after. I attended that. I asked him a question. He answered it.

As I see it, the formula for peace between India and Pakistan is fairly simple and straightforward. The same applies to Afghanistan. The formula is straightforward. But the Iran and Sauri Arabia equation is more complex. It has more dimensions. It might also look that way to me because my knowledge of that part of the world might be less. I just might be less familiar with the nuances and the details. But there are broad outlines that are clear to many people.

The number one thing is, war is out of the question. Iran and Saudi Arabia can not go to war. That option simply does not exist. It is unthinkable. An all-out war between Iran and Saudi Arabia is more unthinkable than a nuclear war between India and Pakistan. The global economy would have a heart attack.

Since Iran and Saudi Arabi are not directly talking, it is also obvious to me that Imran Khan is the only person who has any credibility to facilitate peace between the two powers. He should facilitate until the leaders of Iran and Saudi Arabia finally agree to hold summit-level talks, perhaps the first one in Islamabad. The second one in Delhi, perhaps.

I believe the key to peace is the two powers getting rid of the delusion that one might bring about regime change in the other's country.

Iran would like to export its political system to the neighboring countries. And Iran does not even have that great of a political system. It is not for Iran to decide the political system in Saudi Arabia. And it is not for Saudi Arabia to decide the political system in Iran.

Let's architect a peace that will create an atmosphere of maximum trade and tourism for both Iran and Saudi Arabia.

Iran is more or less a-okay. Saudi Arabia is more or less a-okay. But Yemen is not okay. Syria is not okay. Only meaningful peace between Iran and Saudi Arabia might bring relief to the people of Yemen and Syria.

Only a few days ago, for the first time, I learned that in the UAE there is a federal parliament. The UAE has a roadmap for universal suffrage. I refrain from commenting too much on some of these countries because I stand on a base of little knowledge.

I am going to speak my mind. Whose mind am I going to speak?

That both Iran and Saudi Arabia have accepted Imran Khan as a go-between figure is a big, positive step in the right direction. The next logical step would be for Imran to play host to the leaders of Iran and Saudi Arabia to hold a summit meeting in Islamabad where they can talk face to face.

After a few such summit meetings, they might agree on certain things.
  • We have no active designs on regime change in each other's countries. The politics in Iran is for the people of Iran to decide. The politics in Saudi Arabia is for the people of Saudi Arabia to decide. 
  • We will bring to an end the proxy wars in the various countries in the region. To that end we will bring all stakeholders to the negotiating table, and steer a peacful, political process so as to bring peace and stability in the region. We will specifically work together to bring peace to Yemen, Syria and Lebanon. 
  • We recognize Israel's right to exist. And we pledge to find a creative solution to the Palestine problem. 
  • We both pledge to not develop nuclear weapons. To that end we invite all interested parties, including Israel, to participate in monitoring. And we ask that Israel submit a timeline to get rid of its nuclear weapons.
  • We want to bring maximum trade and maximum tourism to each other's countries and to the region at large. 
  • We ask that all sanctions on Iran be lifted effective immediately. 




Will Imran Khan's Saudi-Iran tour ease tension in the region? Khan's visits to Riyadh, Tehran reinforce Pakistan's neutrality, analysts say, but may not be enough to solve issues......... Tehran reiterated its readiness to come to the negotiating table........ Khan met Saudi King Salman bin Abdulaziz and Crown Prince Mohammed bin Salman (MBS) in the Saudi capital, Riyadh, late on Tuesday..... This followed a trip over the weekend to the Iranian capital Tehran to meet Iranian President Hassan Rouhani and Supreme Leader Ali Hosseini Khamenei......... At a joint press conference on Sunday, Rouhani reiterated an Iranian desire to resolve issues in the region through dialogue...... "Our two countries emphasised that regional issues could only be resolved through political means and dialogue," said Rouhani. "We openly welcome any goodwill gesture by Pakistan for providing more peace and stability for the whole region and we are ready to assist Pakistan for providing full peace and stability for the whole region."......... "Iran is our neighbour. Ties with Iran go a long way back," said the Pakistan PM.......... "Saudi Arabia has been one of our closest friends. Saudi Arabia has helped us when we have been in need. The reason for this trip is that we do not want a conflict between Saudi Arabia and Iran. We recognise that it is a complex issue." ....... Saudi Arabia is a major Pakistani strategic ally, helping to bolster the country's foreign exchange reserves earlier this year with interest free loans, and announcing more than $20bn in new investments in the South Asian country during a high-level visit........ Pakistan is also home to a Shia Muslim minority of roughly 20 percent of its 215 million population. Shia Muslims form the vast majority of the population in Iran........

Khan offered the use of the Pakistani capital, Islamabad, as a neutral venue for Saudi and Iranian leaders to meet to "iron out [their] differences".

.......... Tensions in the region have been at fever-pitch since the attacks, with the US backing Saudi Arabia's accusations of Iran being responsible, and Iran warning of "all-out war" if its territory was attacked....... Following the United Nations General Assembly in New York last month, Khan offered to help mediate between the two regional powers, who have also been battling each other through proxies in Syria, Iraq and Yemen........ Zahid Hussain, an Islamabad-based security analyst, said to expect Khan's meetings to lead to talks "is too much"........ "Khan has developed this kind of illusion about himself that he can now play a much greater role in uniting the Muslim ummah [community], but he doesn't realise that the Muslim ummah is so divided and fractured, with nothing to unite them." ......... Dorsey argued that even though Pakistan has "zilch" leverage over Iran or Saudi Arabia, it makes sense for it to pursue peace talks as a way to bolster its own position of neutrality and relations with each side individually.


Pakistan PM: Trump asked me to be a 'go-between' with Iran "What I like about him is he does not believe in wars," Khan said of the US President, speaking to CNN in Islamabad...... Khan met with Iranian President Hassan Rouhani in Tehran on Sunday, before traveling to Saudi Arabia on Tuesday, with the aim of facilitating talks between the arch rivals....... Khan said Trump had asked him last month to "try and be a go-between with Iran and the United States." ...... The US blamed Iran for last month's attacks on Saudi oil facilities and Trump slapped Tehran with new sanctions on two pillars of the Iranian economy -- the country's central bank and its sovereign wealth fund...... Describing the attack as a "dramatic escalation of Iranian aggression," Defense Secretary Mark Esper told reporters at the Pentagon last month that, while the US "does not seek conflict with Iran," it had "many other military options available should they be necessary."......... He added that a priority in his discussions with the leaders of both countries was to create a ceasefire in Yemen, where a Saudi-led coalition has battled Iranian-backed Houthi rebels....... The abrupt US repositioning of troops from the area has left Syrian Kurdish leaders looking for support from Syria's government and from Russia ...... "I agree that there should be the best effort to leave in an orderly fashion. But will there ever be a best way to leave, end a war? That's why I don't believe in starting wars," he said........ Khan was speaking to CNN at his residence in Islamabad, shortly after hosting an official visit from the Duke and Duchess of Cambridge during their five-day tour of the country........ He was well-known as a friend of the late Diana, Princess of Wales, and said in an official statement released by his office that Pakistan still bears "love and affection" for her.



Monday, October 14, 2019

The Three Crown Princes Of The Gulf







MBS, MBZ, And Fazza.

One of the journalists I quoted in my blog post yesterday that I also emailed has emailed me back saying the photo I posted was that of the Crown Prince of Abu Dhabi, not the president.

These would be the monarchs.



Friday, October 11, 2019

Middle East: Cold War, Cold Peace, Warm Peace



The formula for peace between India and Pakistan is fairly easy. That is not to say peace is easy. It is not. But the formula is straightforward. Pakistan could not militarily capture an acre of Indian land and vice versa. And so you both agree to turn the Line Of Control into the final border, and then compete with each to bring as much democracy and economic growth into the two Kashmirs as possible. There are two Punjabs. There can be two Kashmirs.

The formula for peace in Afghanistan is also fairly straightforward. Something very similar was done recently in Nepal.

The Cold War between Iran and Saudi Arabi is complex. I am not worried about Iran. And I am not worried about Saudi Arabia. But the whole world worries about Yemen and Syria. The abject human tragedy in both places plays on TV screens across the world.

The domestic politics in Saudi Arabia looks opaque to me. The domestic politics in Iran looks opaque to me. I am sure I could read up and learn a few things. But I happen to have a day job.

At some point, the Cold Warriors US and the Soviet Union just decided to face the fact that since one could completely annihilate the other, war just did not make any sense. And so we had Reagan and Gorbachev talking to each other. There were grand summits. They met face to face.

The US is in no position to invade Iran. The US is unwilling and unable. Although the military-industrial complex in the US always appreciates being able to sell a few more weapons. And the world knows Saudis have cash. Truckloads of cash. I don't even mind that trade.

But the tragedies in Yemen and Syria are too much.

At some point, the Saudis and the Iranians are simply going to have to face the fact that war is not a realistic option. Unlike the US and the Soviet Union during the Cold War, Iran and Saudi Arabia are not in a position to wipe each other out. But if they were to go to war, the world economy will have a heart attack. The world is so dependent on oil. Oil prices will skyrocket and the global economy will see a Depression worse than that of the 1930s. Should that happen, you will see the rise of all sorts of fascists in many parts of the world. There will be chaos.

And so the leaders of Iran and Saudi Arabia should hold summit meetings just like Reagan and Gorbachev. They should unconditionally discuss all outstanding issues. They should bring to end all proxy wars. They should end the arms race. They should both recognize Israel's right to exist. They should both commit to finding a creative solution to Palestine. And they should both focus on mutual trade and tourism.

Iran and Saudi Arabia can not wipe each other out. They should also stop the fantasy that they can affect regime change in each other's countries. That fantasy has come with serious human costs in nearby states with weaker state presences.

The politics in no country stays at a standstill. Ultimately the people in each country decide.








The Nation State In Peril
The Middle East Cold War
The Money Primary
And Now Iraq Erupts
Hong Kong: The Mask Ban Can Not Be Implemented
Hong Kong: Downturn?
Dubai, Pakistan, Peace, Prosperity
Imran's Peace Gamble In Afghanistan
The Impeachment Drama
South Asians Working In The Gulf
Masa, MBS, And The Broader Investment Climate
The Importance Of Being Kind
MBS Is Right About The Possible War
I Am Rooting For Imran To Succeed In Pakistan
Formula For Peace: Iran-Saudi-US, Taliban-US, India-Pakistan
Imran Wants To Lift 100 Million Pakistanis Out Of Poverty
To: The Crown Prince Of Dubai
Dubai's Remarkable Economic Transformation

Saturday, October 05, 2019

The Middle East Cold War







New Middle East “Cold War” Can’t Be Explained by Sunni-Shia Divide

Sunni versus Shia’ makes for a simple headline, but does not do justice to the complexities of the new Middle East cold war”

....... a “cold war” in which Iran and Saudi Arabia are “playing a balance of power game.” ....... While “the current confrontation has an important sectarian element,” to understand it simply through this lens would “distort analytical focus, oversimplify regional dynamics, and cause Iran and Saudi Arabia’s motives to be misunderstood.” The two regional powers are certainly “using sectarianism in that game,” Gause argues, “yet their motivations are not centuries-long religious disputes but a simple contest for regional influence.” He also stresses that “the regional cold war can only be understood by appreciating the links between domestic conflicts, transnational affinities, and regional state ambitions.” .......

A key factor in this new cold war is the weakness of state governance throughout the Middle East.

The Saudi-Iranian “contest for influence plays out in the domestic political systems of the region’s weak states,” or states in which “the central government exercises little effective control over its society.” Gause emphasizes that “it is the weakening of Arab states, more than sectarianism or the rise of Islamist ideologies, that has created the battlefields of the new Middle East cold war,” by pushing regional actors to “support non-state actors effectively in their domestic political battles within the weak states of the Arab world.” ........ the U.S. should “prefer order over chaos” and support states that provide effective governance “even when that governance does not achieve preferred levels of democracy and human rights.” ...... The American invasion of 2003 took the lid off Iraqi politics, allowing Iran (most successfully), Turkey, Saudi Arabia and other regional parties to play into Iraqi politics. They did not have to force themselves onto the scene. Local Iraqi parties, fighting for dominance in the new Iraq, invited foreign support. The same is now happening in Syria. Once players in the regional game, both Iraq and Syria are now playing fields. The new Middle East cold war is being played out in the domestic politics of these newly weak Arab states.


Beyond Sectarianism: The New Middle East Cold War: Full Report



The very real human tragedies in places like Yemen and Syria are reason enough for the regional and the global powers to seek to ontrack the regional competition for power.

Friday, October 04, 2019

Dubai, Pakistan, Peace, Prosperity

I have a soft spot for Imran. And I have been reading a lot about Dubai recently.

Dubai is rich. Pakistan is poor. But both need peace. The complex political tensions between Saudi Arabia and Iran have been costing Dubai big money.

And there is no way out for Pakistan unless there is peace on multiple fronts. Pakistan needs peace in Kashmir. Pakistan needs peace in Afghanistan. Pakistan needs peace between Iran and the Saudis. Pakistan needs peace in Yemen. In Syria. Pakistan needs peace between India and China.

India and China are like China and America. They can do war and peace at the same time. But India and China do need to settle their long border.

My knowledge of the Persian Gulf countries is much less than my knowledge of Pakistan. But I have been reading. Right now the domestic politics in many of these countries look downright opaque to me.

Saudis can't bring about regime change in Iran. Iran can't bring about regime change in Saudi Arabia. And so the formula for peace has to be co-existence. To the Americans I say, even if your goal is regime change in Iran, the formula that would work would be maximum trade and maximum tourism. The nuclear deal that Obama put in place was a floor on which more deals could have been built. For example, Yemen. The Saudis and the Iranians should meet and say, let's get out of Yemen. Let's engineer a peaceful political process instead. Israel should be part of the deal because it has the greatest interest in no nuclear spread. Also, it claims it is best at catching if Iran lies. Well then, why are you not part of the deal? To make sure Iran does not lie and cheat.

I was watching an interview of the Dubai Sheikh a few days ago. And he is pretty clear. He wants peace with Iran. Because he wants to trade with Iran. It makes sense to me.

Dubai is a beacon of hope. It needs to further prosper.




Imran's Peace Gamble In Afghanistan
The Dubai Sheikh Is A Business School Case Study
The Impeachment Drama
South Asians Working In The Gulf
Masa, MBS, And The Broader Investment Climate
The Biggest Reason For Lifting The Curfew In Kashmir
The Importance Of Being Kind
MBS Is Right About The Possible War
I Am Rooting For Imran To Succeed In Pakistan
Formula For Peace: Iran-Saudi-US, Taliban-US, India-Pakistan
Imran Wants To Lift 100 Million Pakistanis Out Of Poverty
The Blockchain Will Make A Global Wealth Tax Possible

Tuesday, October 01, 2019

Masa, MBS, And The Broader Investment Climate



I am not counting WeWork and Uber out yet. They still might come back. But Elon Musk is hellbent on eating Uber's lunch. And it is hard to bet against Elon Musk.

What I note is both Uber and WeWork have had culture problems. When your company's valuation goes into dizzying heights, it is easy to congratulate yourself. It is easy to take all the credit. It is easy to say you did it all by yourself. It is easy to get giddy. It is easy to lose your fulcrum. It is easy for the corporate culture to deteriorate. When the corporate culture is poisoned, it is only a matter of time before a company goes belly up.

What do I think of Masa Son? I think he is a genius. He ranks with Steve Jobs. What Steve Jobs was to technology, Masa Son has been to finance. But I would not give Imran Khan a cricket bat today. He is better off running a country. Maybe Masa is past his prime. Maybe Masa became lazy. His specialty was spotting Alibaba before anyone else. He went big on Yahoo before anyone else. But in recent years he went into WeWork and Uber after everyone else had spotted them. He went into WeWork and Uber for all the wrong reasons. He went into them because they were grabbing headlines.

The Crown Prince of Saudi Arabia put a lot of money into Masa Son's kitty. Masa talked him into it. I say to MBS, congratulations, you have failed spectacularly. And I don't mean that in a sarcastic way. The number one quality of the Silicon Valley culture is that failure is celebrated. If you have a bunch of failed tech startups in your past as a tech entrepreneur, venture capitalists find that highly attractive.

Where technology is going to go in the next 25 years is going to be 100 times more spectacular than whatever has happened in the past 25. So it is not that MBS' timing was not right. And it is not that he bet on the wrong person. Masa is rightfully a legend.

If I were MBS, I would plot to put something like 100B into some company (or companies) that firmly rest on the Blockchain and target the poorest two billion on the planet. That 100B would become 1T or even 2T in a 10-year timeframe.

Maybe I can help!

Saudi Arabia needs to make a few bold moves like this one if it is not to see a decline in 10 years. Clean energy is good news for everybody. It does not make sense for there to be no planet. If there is no habitable planet left, it does not really mean much that a country is rich. Rich loses meaning in that scenario. But a country like Saudi Arabia must diversify. That is the mantra.




I am a very political person. I can't think of Saudi Arabia (or any country, for that matter) and not think politics. And let me say at the very outset, as an avid student of American politics for decades now, it is my strong opinion that the American political system is severely lacking, and requires fundamental change. Not only that, I see enormous resistance to any suggestions for change. And not only from people who might in the short term not benefit too much from the change. The very people who might benefit drag their feet.

I don't think the American political system is the ideal that every country needs to move towards. Even if the idea is a western-style liberal democracy, look at the many countries of Europe. Each so-called western democracy seems to carve out its own unique path. And so it can be said every country on earth is destined to carve out a unique political path.

If the United States will move up to its next level of economic development, it must transform its politics. If China is to avoid the middle-income trap, it must transform its politics. If Saudi Arabia is to diversify and not see decline in 10 years, it must transform its politics.

My recommendation to every monarchy in the Gulf is to create a path to a constitutional monarchy. Again, the pace will be unique to every country. And the monarch need not be as laid back as Queen Elizabeth. It is possible to create a constitutional monarchy where the monarch stays a fairly active figure. As to the unique path for each country, and the shape of that particular constitutional monarchy, there can be debate and discussion.

A more participatory political system is likely to exert that requisite pressure that will force the Gulf economies to diversify and maintain their vibrancy even during the fast-approaching clean energy era. There is a major economic incentive for political reform.

And this is the least disruptive way to transform. Arab Springs, by definition, are phenomenon that blindside you. They come out of seemingly nowhere. So it makes sense to be proactive about it.

Monday, September 30, 2019

MBS Is Right About The Possible War





Formula For Peace: Iran-Saudi-US, Taliban-US, India-Pakistan
The Blockchain Will Make A Global Wealth Tax Possible
How Will Democracy Come To The Arab Countries?
War With Iran: Super Bad Idea For All Parties Concerned

MBS is right to say there is only a political solution. And I point my finger towards Yemen. The humanitarian crisis in that country is atrocious. There is no military solution in Yemen. There is only a political solution.

There is no military solution with Iran. There is only a political solution.

Masa Son (who by all accounts is a genius) talked MBS into putting I don't know if it is 50 or 100 billion dollars into his Vision Fund. Masa put a big chunk of that into Uber and WeWork. Looks like both are bombing. Masa is not a monarch. He has a stellar record as an investor. But the thing is, if Imran Khan had started smoking at the peak of his cricket career, how long do you think he might have been a great player?

This MBS-Masa story is one to learn from.

Saudi Arabia is a wealthy country that became wealthy very rapidly when oil was discovered. And Saudi leaders have been talking about diversifying the economy for decades now. But that has not come to be. Now Saudi Arabia is under immense time pressure. Not delivering on diversification is no longer an option. It has at most a decade to do so. The rightful clean energy push in the world and the exponential progress being made by clean energy technology is good news for humanity, and it need not be bad news for Saudi Arabia.

I think if MBS were to draw a roadmap to becoming a constitutional monarch in something like five years, that would be the most powerful decision taken by any Saudi king. Become a constitutional monarch, and create a bicameral legislature.

It gets said about MBS he is a millennial who has already come to power. Pete Buttigieg in the US is older than MBS (I think) and Pete is considered almost too young.

It is not a question of individual IQ or individual ability. It is about the political structure that might best deliver. And Saudi Arabia has a 10-year window to diversify or face decline.

The best exercise of power is restraint. I am critical of some of MBS' misadventures in Yemen. He must become cognizant of the human suffering there. What Yemen needs is a political process.

Digital technology can enhance a ruler's powers. But it is not about having more power. It is about exercising power right. It is about being just and fair. I was watching a video yesterday about some elements of the Saudi regime misusing Twitter to clamp down on even basic expressions. I did not feel good about it.

Some of what MBS has said about technology and the economy does sound visionary. But unless the political process is right, you do run the danger of ending up with white elephants. When you surround yourself with yes men, you could walk naked and no one will bother to tell you because they are too afraid.

Recently I have been listening to some of what Imran Khan has been saying about the early days of Islam, the state that Prophet Muhammad created.

MBS does accept Israel's right to exist. That apparently is a major milestone. And women being able to drive in Saudi Arabia has been a long time coming. But the best political move MBS could make is choose to become a constitutional monarch. I don't see any hint of that. But that is my thought.